Google has been in the smart phone industry since 2008, establishing their brand called “Nexus”. Google enjoyed immense popularity with their Nexus lineup, because there were two points of differences with their phones. Firstly, Google offered a “pure Android” experience that was only exclusive with Nexus devices. Essentially, pure Android delivers the barebones and the essentials of operating system, offering a clean and minimalistic user interface (developer.android). Secondly, the Nexus lineup was priced very competitively compared to other smart phones, while still retaining build quality and high end specifications.

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However, Google may be shifting from their low cost strategy mentality towards product differentiation. With the release of their new flagship phone, the Nexus 6, Google took the world by surprise with the pricing. The last Nexus generation phone (Nexus 5) was priced at $350 which was relatively cheap compared to other modern smartphones. The Nexus 6 starts at a whopping $750 (play. google)

From my perspective, this is a risky move by Google. The Nexus lineup success was primary attributed with the low pricing of the phone with the combination of pure Android. With the augment in price, Google is potentially losing a huge customer base. The only point of difference now is their exclusive software which only appeals to die-hard Android purists. With the increase in price, the Nexus 6 is becoming a  generic modern smart phone, with only the software keeping it from being labeled ‘just another ordinary phone’.

Works Cited:

https://play.google.com/store/devices?hl=en

http://developer.android.com/design/patterns/pure-android.html

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